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Restart Grants and Recovery Loans

Restart Grants and Recovery Loans

As lockdown restrictions are eased, businesses may need help to re-open and to recover from the impact of the pandemic. Depending on the nature of the business, they may be eligible for a Restart Grant or a Recovery Loan.

 

Restart Grants

The Restart Grant Scheme provides support to help business that were required to close to re-open as lockdown restrictions are eased. The grants are available to businesses in non-essential retail and businesses in the hospitality, accommodation, leisure, personal care and gym sectors. 

The grants are available from 1 April 2021 and must be claimed from the local council. Applications can be made on the relevant council’s website.

To qualify, a business must:

  • be based in England;
  • pay rates; and
  • be trading on 1 April 2021.

Non-essential retail business can apply for a Restart Grant of up to £6,000, whereas businesses in the hospitality, accommodation, leisure, personal care and gym sectors can apply for a Restart Grant of up to £18,000. Local councils will use their discretion to determine whether a business is eligible for a grant.

 

Recovery Loan Scheme

The Recovery Loan Scheme is designed to provide access to finance for UK businesses as they recover from the impact of the Covid-19 pandemic. Businesses of any size can apply for loans under the scheme, and can benefit from a loan or overdraft of between £25,001 and £10 million per business or asset finance of between £1,000 and £10 million per business. However, the amount offered and the terms are at the discretion of the lender.

To encourage lenders to participate, the Government guarantee 80% of the finance to the lender; however, the borrower remains liable for 100% of the debt.

A business can apply for a Recovery Loan if it is trading in the UK. Applicants will need to demonstrate that their business:

  • would be viable were it not for the pandemic;
  • has been adversely impacted by the pandemic; and
  • is not in collective insolvency proceedings.

Businesses that meet the eligibility criteria can apply for a recovery loan, regardless of whether they also have a Bounce Back loan or a Coronavirus Business Interruption Loan. Under the scheme, no personal guarantees are taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

The scheme is due to run until 3 December 2021.

 

Other Support

We've just released our simple COVID Business Support Guide, available to download for FREE now. A summary of the latest loans, payroll schemes, tax payment arrangements and more, this one-stop shop guide can point you in the right direction. If you're a business looking to ‘bounce back’ as we ease out of lockdown, get in touch to find out how Inform Accounting can help.

 

Get in touch

Get in touch with us today to find out how we can help keep you compliant, and benefit from our expert advice. Give our Business Development Manager a call on (0121) 295 8884, or email charlie.sangha@informaccounting.co.uk.

 

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